Question
The 6-month, 12-month, 18-month, and 24-month zero rates are 3%, 4%, 5%, and 6% with semiannual compounding. What is the continuous compounding forward rate for
The 6-month, 12-month, 18-month, and 24-month zero rates are 3%, 4%, 5%, and 6% with semiannual compounding. What is the continuous compounding forward rate for the six-month period beginning in 12 months?
| a. | 6.89% | |
| b. | 7.00% | |
| c. | 8.83% | |
| d. | 9.00% |
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
5th Edition
0078110289, 978-0078110283
